[Federal Register Volume 86, Number 109 (Wednesday, June 9, 2021)]
[Notices]
[Pages 30593-30595]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-12024]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-557-822]
Utility Scale Wind Towers From Malaysia: Final Affirmative
Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of utility scale wind towers (wind towers) from Malaysia.
DATES: Applicable June 9, 2021.
FOR FURTHER INFORMATION CONTACT: Nathan James, AD/CVD Operations,
Office V, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-5305.
SUPPLEMENTARY INFORMATION:
Background
On March 25, 2021, Commerce published the Preliminary Determination
in this investigation in the Federal Register.\1\ The petitioner in
this investigation is the Wind Tower Trade Coalition. In addition to
the Government of Malaysia, the mandatory respondent in this
investigation is CS Wind Malaysia Sdn Bhd (CS Wind).
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\1\ See Utility Scale Wind Towers from Malaysia: Preliminary
Affirmative Countervailing Duty Determination, 86 FR 15887 (March
25, 2021) (Preliminary Determination), and accompanying Preliminary
Decision Memorandum.
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A summary of the events that occurred since Commerce published the
Preliminary Determination is found in the Issues and Decision
Memorandum, which is hereby adopted by this notice.\2\ The Issues and
Decision Memorandum is a public document and is on file electronically
via Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (ACCESS). ACCESS is available to
registered users at http://access.trade.gov. In addition, a complete
version of the Issues and Decision Memorandum can be accessed directly
at http://enforcement.trade.gov/frn/.
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\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Determination in the Countervailing Duty Investigation of
Utility Scale Wind Towers from Malaysia,'' dated concurrently with
this notice (Issues and Decision Memorandum).
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Period of Investigation
The period of investigation is January 1, 2019, through December
31, 2019.
Scope of the Investigation
The products covered by this investigation are wind towers from
Malaysia. For a complete description of the scope of this
investigation, see Appendix I.
Verification
Commerce was unable to conduct on-site verification of the
information relied upon in making its final determination in this
investigation. However, we took additional steps in lieu of on-site
verification to verify the information relied upon in making this final
determination, in accordance with section 782(i) of the Act.\3\
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\3\ See Commerce's Letter, ``Countervailing Duty Investigation
of Utility Scale Wind Towers from Malaysia: In Lieu of Verification
Questionnaire,'' dated March 25, 2021.
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation, and the issues raised in
the case and rebuttal briefs by parties in this investigation, are
discussed in the Issues and Decision Memorandum. For a list of the
issues raised by parties, and to which we responded in the Issues and
Decision Memorandum, see Appendix II of this notice.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Act. For each of the subsidy programs found countervailable,
Commerce determines that there is a subsidy, i.e., a financial
contribution by an ``authority'' that gives rise to a benefit to the
recipient, and that the subsidy is specific.\4\ For a full description
of the methodology underlying our final determination, see the Issues
and Decision Memorandum.
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\4\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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In making this final determination, Commerce is relying, in part,
on facts otherwise available pursuant to section 776(a) of the Act. For
a full discussion of our application of facts available, see the
Preliminary Determination \5\ and Comment 3 of the accompanying Issues
and Decision Memorandum.
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\5\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Countervailing Duty Investigation of Utility
Scale Wind Towers from Malaysia,'' dated March 19, 2021 at 7.
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Changes Since the Preliminary Determination
Based on our review and analysis of the record and the comments
received from parties, we made certain changes to the countervailable
subsidy rate calculation for CS Wind. For a discussion of these
changes, see the Issues and Decision Memorandum.
All-Others Rate
Section 705(c)(5)(A) of the Act provides that in the final
determination, Commerce shall determine an all-others rate for
companies not individually examined. This rate shall be an amount equal
to the weighted average of the estimated subsidy rates established for
those companies individually examined, excluding any rates that are
zero, de minimis, or based entirely under section 776 of the Act.
In this investigation, Commerce calculated an individual estimated
countervailable subsidy rate for CS Wind that is not zero, de minimis,
or based entirely on facts otherwise available. Accordingly, we have
assigned CS Wind's subsidy rate to all
[[Page 30594]]
other producers and exporters, pursuant to section 705(c)(5)(A)(i) of
the Act.\6\
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\6\ CS Wind reported its sales values as public information.
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Final Determination
Commerce determines that the following countervailable subsidy
rates exist:
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Subsidy
Company rate
(percent)
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CS Wind Malaysia Sdn Bhd.................................... 6.42
All Others.................................................. 6.42
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Disclosure
Commerce intends to disclose to interested parties its calculations
and analysis performed in this final determination within five days of
any public announcement or, if there is no public announcement, within
five days of the date of publication of this notice in the Federal
Register, in accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs
and Border Protection (CBP) to suspend liquidation of entries of
subject merchandise as described in the scope of the investigation
section that were entered, or withdrawn from warehouse, for consumption
on or after March 25, 2021, the date of publication of the Preliminary
Determination in the Federal Register.
We are directing CBP to continue to suspend liquidation of all
imports of the subject merchandise from Malaysia that were entered, or
withdrawn from warehouse, for consumption on or after the date of
publication of this notice in the Federal Register. The suspension of
liquidation instructions will remain in effect until further notice. We
are also directing CBP to collect countervailing duty deposits at the
rate described above.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
order and require a cash deposit of estimated countervailing duties for
such entries of subject merchandise in the amounts indicated above, in
accordance with section 706(a) of the Act. If the ITC determines that
material injury, or threat of material injury, does not exist, this
proceeding will be terminated, and all cash deposits will be refunded
or canceled.
ITC Notification
In accordance with section 705(d) of the Act, Commerce will notify
the ITC of its final affirmative determination. Because Commerce's
final determination is affirmative, in accordance with section 705(b)
of the Act, the ITC will make its final determination as to whether the
domestic industry in the United States is materially injured, or
threatened with material injury, by reason of wind towers from Malaysia
no later than 45 days after our final determination. In addition, we
are making available to the ITC all non-privileged and non-proprietary
information related to this investigation. We will allow the ITC access
to all privileged and business proprietary information in our files,
provided the ITC confirms that it will not disclose such information,
either publicly or under an administrative protective order (APO),
without the written consent of the Assistant Secretary for Enforcement
and Compliance.
Notification Regarding APO
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to the APO of their responsibility concerning the disposition
of proprietary information disclosed under APO in accordance with 19
CFR 351.305(a)(3). Timely written notification of the return/
destruction of APO materials, or conversion to judicial protective
order, is hereby requested. Failure to comply with the regulations and
terms of an APO is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 771(i) of the Act, and 19 CFR 351.210(c).
Dated: June 2, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation consists of
certain wind towers, whether or not tapered, and sections thereof.
Certain wind towers support the nacelle and rotor blades in a wind
turbine with a minimum rated electrical power generation capacity in
excess of 100 kilowatts and with a minimum height of 50 meters
measured from the base of the tower to the bottom of the nacelle
(i.e., where the top of the tower and nacelle are joined) when fully
assembled.
A wind tower section consists of, at a minimum, multiple steel
plates rolled into cylindrical or conical shapes and welded together
(or otherwise attached) to form a steel shell, regardless of
coating, end-finish, painting, treatment, or method of manufacture,
and with or without flanges, doors, or internal or external
components (e.g., flooring/decking, ladders, lifts, electrical buss
boxes, electrical cabling, conduit, cable harness for nacelle
generator, interior lighting, tool and storage lockers) attached to
the wind tower section. Several wind tower sections are normally
required to form a completed wind tower.
Wind towers and sections thereof are included within the scope
whether or not they are joined with nonsubject merchandise, such as
nacelles or rotor blades, and whether or not they have internal or
external components attached to the subject merchandise.
Specifically excluded from the scope are nacelles and rotor
blades, regardless of whether they are attached to the wind tower.
Also excluded are any internal or external components which are not
attached to the wind towers or sections thereof, unless those
components are shipped with the tower sections.
Merchandise covered by this investigation is currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) under subheading 7308.20.0020 or 8502.31.0000. Wind towers
of iron or steel are classified under HTSUS 7308.20.0020 when
imported separately as a tower or tower section(s). Wind towers may
be classified under HTSUS 8502.31.0000 when imported as combination
goods with a wind turbine (i.e., accompanying nacelles and/or rotor
blades). While the HTSUS subheadings are provided for convenience
and customs purposes, the written description of the scope of this
investigation is dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Subsidies Valuation
V. Use of Facts Available
VI. Analysis of Programs
VII. Discussion of the Issues
Comment 1: Whether Commerce Should Determine that the Government
of Malaysia (GOM) Duty Exemption Program Is Specific on the Basis of
Facts Available
Comment 2: Whether the GOM Has an Effective System in Place to
Track Input Consumption Pursuant to 19 CFR 351.519
Comment 3: Whether Commerce Should Revise Its Analysis of the
Electricity for Less Than Adequate Remuneration (LTAR) Program
Comment 4: Whether Commerce Should Select A Different Tier-One
Benchmark to Measure the Adequacy of Remuneration for CS Wind's Land
Comment 5: Whether Commerce Should Modify the Denominator Used
in Its Benefit Calculations
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Comment 6: Whether Commerce Incorrectly Declined to Initiate an
Investigation into the Cut-to-Length (CTL) Plate for LTAR New
Subsidy Allegation (NSA)
VIII. Recommendation
[FR Doc. 2021-12024 Filed 6-8-21; 8:45 am]
BILLING CODE 3510-DS-P